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Capital Lease
An agreement that grants the lessee the right to use an asset for a long period, typically seen as a purchase by the lessee for accounting purposes.
Original Amount
The initial sum of money involved in a financial transaction, before any deductions, depreciation, or appreciation.
Guaranteed Residual Value
An assurance that an asset will have a specified value at the end of its lease term.
Capital Lease
A lease agreement that is classified as a purchase of assets for accounting purposes, where the lessee assumes some of the risks and benefits of ownership.
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